Exam (elaborations)
Chapter 7. Economic Issues in Nursing and Health Care
- Institution
- West Virginia School Of Osteopathic Medicine
Chapter 7. Economic Issues in Nursing and Health Care
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Chapter 07: Economic Issues in Nursing and Health CareMULTIPLE CHOICE
1. While studying health care economics, the nursing professor explains to a class that the
economic principle of opportunity costs means that
a. economic decisions are based on the best opportunity that arises.
b. free market failure occurs when efficient use of resources is lacking.
c. satisfying one desire eliminates the possibility of satisfying another.
d. we make our decisions based on opportunities to benefit others.
ANS: C
Because resources spent on one set of desires cannot be used to satisfy other desires, decisions
are made based on the value of what was not chosen. This is the principle of opportunity
costs; in other words, what has acting on this one opportunity cost you?
Although we do make many decisions based on the best choices or opportunities that arise for
us, this is not a complete or accurate description of the concept.
A lack of efficient use of resources contributes to market failure, not opportunity costs.
Making decisions to benefit others is not as common as making decisions based on self-
interest.
DIF: Cognitive Level: Understand REF: 124 | Box 7-1
TOP: Integrated Process: Teaching/Learning MSC: NCLEX Client Needs: N/A
2. The nurse is explaining the American health care system to a patient from another country that
has government-sponsored health care. The nurse would explain that one driving force for
private insurance has been
a. consumer-driven markets demanding insurance.
b. necessary rationing of scarce health care resources.
c. the lack of government involvement in health care.
d. uncertainty related to the need for medical care.
ANS: D
Most health care needs, other than those for preventive care, occur in an unpredictable manner
and are costly enough that people cannot typically save or borrow enough money to pay for
them. This led to the rise of private insurance.
Private insurance was not created out of a demand from the consumer-driven marketplace.
Rather, it was created from the uncertainty related to medical need.
Private insurance and the lack of private insurance have contributed to what is essentially
rationing of health care resources (not the other way around). People who are uninsured or
underinsured often do not get the care they need.
The federal government has been involved in health care at least since the 1960s.
DIF: Cognitive Level: Understand REF: 124
TOP: Integrated Process: Teaching/Learning MSC: NCLEX Client Needs: N/A
3. A practicing nurse is interested in health care economics. To create an environment where
health care more closely resembles the consumer market, this nurse would place high priority
on activities revolving around
a. educating patients and families.
, b. exploring the costs of treatment.
c. understanding payment options.
d. using less expensive supplies.
ANS: A
In the consumer market, consumers have knowledge that allows them to dictate conditions. In
the health care market, “consumers” often have much less information on which to base
decisions about what to “buy.” This violates a basic assumption of economics, so having more
highly educated “consumers” would help to rebalance this situation.
All nurses should have a basic understanding of the costs of health care, but this in itself does
not address a difference in general economics and the economics of health care.
Understanding payment options will not address a difference in general economics and the
economics of health care.
Using less expensive supplies may be a good idea if quality is not sacrificed, but this does
nothing to address a difference in general economics and the economics of health care.
DIF: Cognitive Level: Analyze TOP: Nursing Process: Implementation
MSC: NCLEX Client Needs: N/A
4. In trying to understand current problems in today’s health care environment, the nurse could
reframe the discussion as a problem created by
a. competing interests of market and governmental forces.
b. tension between for-profit and not-for-profit institutions.
c. too many different agencies providing the same services.
d. unchecked rises in providers’ salaries and fees for service.
ANS: A
The U.S. health care system is a mix of market forces (based on equilibrium created through
pricing mechanisms) and government entities (which should be based on egalitarian ideals).
This mix of systems is primarily responsible for inequities in the health care system today.
There are both for- and not-for-profit organizations operating in health care today. Not-for-
profit status is a tax designation; all entities must make enough profits to continue operating.
Redundancy in health care does exist, but it is not one of the root causes of its problems.
Unchecked rises in fees were part of the reason managed care came into being, but this is not
broad enough to reframe an entire concept.
DIF: Cognitive Level: Analyze
TOP: Integrated Process: Communication and Documentation MSC: NCLEX Client Needs: N/A
5. A nurse is explaining Medicaid and Medicare to a patient and describes the biggest difference
in the programs as being the
a. duration of benefits.
b. health services provided.
c. level of administration.
d. waiting period for coverage.
ANS: C
Whereas Medicare is purely a federal administered program, Medicaid programs are
administered by individual states.
The duration of benefits is dependent on meeting the criteria for inclusion.
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